The Chief Executive Officer of Lionstone Offshore Services Limited, Mr Amaechi Ndili, and his wife, Mrs Njide Ndili, have lamented that their ongoing trial before the Lagos Special Offences Court, Ikeja over an alleged $4.6m debt is in violation of the clear pronouncements of superior courts, and that the police have no business in adjudicating on business disputes, or the recovery of civil debts.
The couple are being prosecuted over a civil business dispute between their company and Hercules Offshore Nigeria Limited.
They stated that despite the clear stand of the law and judgements of superior courts that the Nigerian police have no business in adjudicating on business disputes, or recovering of civil debts, the police still consistently interfere in civil cases.
The defendants were alleged to have fraudulently converted the sum of $4.6m, said to belong to Hercules Offshore Nigeria Limited, to their personal use; a matter that an Arbitration Tribunal in London had presided over and granted an award to Hercules Offshore Nigeria Limited
The dispute arose from a joint business agreement signed by the two companies: Lionstone, a Nigerian Company; and Hercules Offshore Limited an American company. Both companies decided to work together on the tender of a specific contract in the oil sector that could be won from a major oil Company. Lionstone, with the assistance of Hercules, bid on this contract, and they did not eventually win.
Under the Memorandum of understanding, parties agreed that all disputes that might arise in the course of the contract implementation and interpretation must be submitted to the Arbitration Tribunal in London.
According to court documents, due to the nature of their pre-existing relationship, Lionstone agreed to, and worked together with Hercules Offshore on this interim contract which arose before the main tendered contract. This interim contract made no mention of Hercules at all and was dated October 2010, while the Hercules/Lionstone MOU and its amendments were dated Dec 2011.
Under the new deal, and as a result of the potential strategic nature of their relationship, both parties agreed to share the proceeds from the interim contract solely awarded to Lionstone by Addax. However, while the business was going on, Lionstone alleged a breach of contract on the side of Hercules and insisted that Hercules remedy its breach.
The disagreement led both parties to submit themselves before the Arbitration Tribunal in London and at the end of its sitting, the tribunal made its findings and granted the award to Hercules.
In a bid to enforce the arbitral award, Hercules Offshore Nigeria Limited approached the Federal High Court, Lagos in suit number FHC/L/CS/1461/2017 and the matter is currently before the Court of Appeal in appeal number CA/LAG/CV/344/2019.
While the litigation was ongoing in Nigeria Courts, Hercules Offshore petitioned the police, asking the police to compel Lionstone to pay the contested sum, while alleging fraudulent conversion of money paid to Lionstone under the interim contract signed solely between Addax and Lionstone.
Consequent upon the petition, police from the Special Fraud Unit, Ikoyi clamped down on all Lionstone’s accounts in Nigeria, while Lionstone on the other hand sued the police and Hercules for tortious interference, claiming damages for injuries suffered by the unlawful interference in a civil dispute between parties.
Consequently, the police filed a charge against Amaechi Ndili, his wife Njide Ndili, and their company, Lionstone Offshore Services Limited, alleging fraudulent conversation of $4.6m
When the matter came up before Justice Olubunmi Abike-Fadipe, the first prosecution witness, Godwin Okon, who was the business analyst manager of the company, said the first defendant agreed to the indebtedness of Lionstone Offshore Services to Hercules Offshore Nigeria in the statement he made at the Special Fraud Unit of the Nigeria Police Force.
Led in evidence by the prosecutor and Assistant Commissioner of Police, Simon Lough (SAN), the witness said the defendant agreed to withholding money belonging to Hercules Offshore Nigeria Limited.
Okon said the defendant promised to pay back by instalments and the first instalment was to be remitted in the sum of $600,000
He said it was when he failed to remit the amount owed Hercules Offshore Services that they decided to use the police to prosecute him in order to recover the money owed Hercules Offshore Services.
Okon told the court that Hercules Offshore Services had earlier taken the Lionstone Offshore Services Limited before an arbitration court in London, in line with the provisions of the joint bidding agreement in the event of a dispute.
He said the London arbitration court decided in favour of Hercules Offshore Nigeria Limited.
Okon said, “The first defendant agreed that Lionstone was in dispute with Hercules over contractual sums and arbitration award was in favour of Hercules.”
The witness said the defendants agreed to withholding money belonging to Hercules.
He said it was when he failed to remit the amount owed to Hercules Offshore Services that they decided to use the police to first seek to recover the money failing which they should prosecute him in order to recover the money adjudged as owed Hercules.
During cross-examination by the defence counsel, Ebun Shofunde (SAN), the witness admitted that he was not aware or present during contract negotiations.
He said Hercules had originally withheld funds due to Lionstone Marine resulting in Lionstone losing its vessels.
The witness also stated that none of the directors of the company are in the country as they had all left Hercules.
The case was adjourned to May 16.
